UK Manufacturing Bags £9.2bn Growth

UK production of handbags and luggage grew 3% to £364 billion as at the end of 2014 - the equivalent of £9.2 billion - according to analysis of the latest official PRODCOM Report from the ONS by Santander Corporate & Commercial.

The improving economy and confidence in consumer spending led to the manufacture of luggage, handbags and saddlery becoming the fastest-growing manufacturing sector in the UK, with production worth £205m in 2014 compared to £133m in 2013 -  a year on year increase of 54% and a seven-year high for the sector.

Overall, the manufacture of motor vehicles remains the largest UK manufacturing sector in terms of production, with £36bn produced in 2014.

Other major sectors include the manufacture of air and spacecraft related machinery (£21bn); the manufacture of pharmaceutical preparations (£10bn); and the operations of dairies and cheese making (£8bn).

According to the analysis, the production of food-related products accounted for £21bn as at the end of 2014.

Indeed, the operations of dairies and cheese making, processing and persevering of meat (£7bn) and manufacture of bread, pastry, goods and cakes (£6bn) were three of the 10 largest manufacturing sectors in the UK.

Top 10 largest manufacturing sectors in the UK in terms of production:

Sector 2013

 

£m

2014

 

£m

y-o-y growth
Manufacture of motor vehicles 34,204 35,926 5%
Manufacture of air and spacecraft and related machinery 20,316 20,692 2%
Manufacture of pharmaceutical preparations 11,270 10,133 -10%
Manufacture of other parts and accessories for motor vehicles 8,618 9,100 6%
Operation of dairies and cheese making 7,068 7,929 12%
Other printing 7,162 7,468 4%
Processing and preserving of meat 6,189 6,596 7%
Manufacture of bread; manufacture of fresh pastry goods and cakes 6,023 6,281 4%
Manufacture of metal structures and parts of structures 5,407 6,015 11%
Manufacture of instruments and appliances for measuring, testing and navigation 5,668 5,895 4%
UK TOTAL 354,721 363,947 3%

Head of manufacturing at Santander Corporate & Commercial, Charles Garfit commented: "We believe that a significant part of the growth in UK production is down to a focus on luxury products, as evidenced by the growth in handbags and luggage, as well as the success of a number of upmarket UK car marques.

"Santander is also increasingly working with and supporting manufacturers of high-end food and drink products, usually with a strongly ???British' branding as these sorts of products are becoming increasingly well received domestically and also around the world."

Top 10 largest manufacturing sectors in the UK in terms of production:

Sector 2013

 

£m

2014

 

£m

y-o-y growth
Manufacture of motor vehicles 34,204 35,926 5%
Manufacture of air and spacecraft and related machinery 20,316 20,692 2%
Manufacture of pharmaceutical preparations 11,270 10,133 -10%
Manufacture of other parts and accessories for motor vehicles 8,618 9,100 6%
Operation of dairies and cheese making 7,068 7,929 12%
Other printing 7,162 7,468 4%
Processing and preserving of meat 6,189 6,596 7%
Manufacture of bread; manufacture of fresh pastry goods and cakes 6,023 6,281 4%
Manufacture of metal structures and parts of structures 5,407 6,015 11%
Manufacture of instruments and appliances for measuring, testing and navigation 5,668 5,895 4%
UK TOTAL 354,721 363,947 3%

Garfit continued: "Santander is deeply committed to supporting the UK manufacturing sector, helping firms to grow and expand both domestically and overseas.

"In 2015 we provided financial support to a large number of diverse UK manufacturing businesses, from toys and games makers and clothing businesses, to food and drink firms and manufacturers of motorbikes and electronic goods.

"In terms of growth opportunities, we firmly believe that trading internationally remains vital to the success of the UK manufacturing industry. There are significant opportunities for UK manufacturers across a range of international markets and this is a core focus for us and our clients in 2016.

"???Made in Britain' is increasingly becoming synonymous with high quality products and the world has become very receptive to UK manufactured goods - from cars and pharmaceuticals, to handbags and cheese."

Source: The Manufacturer

 

 

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